The media standoff in Australia

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Facebook shut off news access for Australian users on Wednesday. It’s part of an ongoing brawl over proposed legislation that would create a statutory code for bargaining between news organisations and large technology platforms like Facebook or Google. You can read more about it here or here.

Some initial thoughts:

  • This seems like an misstep for Facebook, especially since Google signed an 11th-hour deal with major news publishers to avoid anything so drastic. It is taking a combative stance against a national government, in an environment where there is already concern about Facebook’s influence. “Large corporation threatening nation-state” is a bad look.

    Who has more to lose? For the Australian government, backing down means giving in to a foreign company – not even a foreign power. For Facebook, acquiescing sets a precedent that regulators in other countries could emulate. I suspect Facebook will try and cut a deal here they can use in other regions.
  • The lady doth protest too much, methinks. As much as Facebook repeats that it is just a mere platform, we now have an incontrovertible demonstration of its power; it put up barriers to news for millions of people with the click of a button.

    The words that come to mind when I think about Facebook are no longer “innovative,” “social network,” “founder-in-t-shirt,” “cringy posts,” or “newsfeed,” instead they’re “fake,” “malign,” “opaque,’ “behemoth.”
  • In the short-term, it might have the consequence of hurting smaller publishers who rely on Facebook to reach audiences. Larger news organisations can still expect traffic through their website.